Inflation and a Market Falling Apart

First on that CPI print Thursday. Inflation appears to be nowhere near going away any time soon. Here is the S&P (black), full CPI (blue), and the NY Fed’s Underlying Inflation Gauge, UIG (red):

The UIG expresses the main direction of inflation, and as the chart shows, UIG hasn’t even begun to round over.

The narrative is that inflation is caused by a “su…